At its core, this behemoth is a company renowned for customer service, making things simple and running efficient operations – which is why it is ranked Elite in The DeliveryX Europe Top500 2022.
Amazon’s mission to be Earth’s most customer-centric company extends to logistics and fulfilment services by delivering customer orders however soon the customer wants, at different price levels and to different locations, including homes and collection lockers.
The company has disrupted many markets since it launched in 1994 and the logistics industry is no exception. Since the UK launch of Amazon Logistics in 2012, the retailer has grown the business to become the second-biggest carrier by volume in the UK. Only postal incumbent Royal Mail delivers more.
At the time of the launch of this logistics business, then Amazon UK CEO Chris North commented: “Amazon Logistics is not about replacing a carrier, it is about complementing. It is about expanding the total capacity in the UK for fast delivery.”
What works in one country is quickly adopted in others. The UK has been a test-bed in Europe for many services which Amazon has subsequently rolled out to other countries. These include operations such as Delivery Service Partners and customer-facing models such as Amazon Prime.
Being the first to market or changing expectations is not always straightforward and Amazon is used to meeting opposition from existing workers, environmental groups and even from the public. Plans for four new distribution centres in France have been blocked recently – although two automated centres near Paris and Metz are going ahead – while workers at another warehouse are striking over wage increases.[1]
Setbacks like these do little to stall Amazon’s progress. Today, Amazon Logistics has its own airplanes, chartered ships and delivery operations worldwide and it continues to innovate with electric vehicles, drones and autonomous robots. Amazon’s Prime Air drone delivery service has been quoted as costing $63 per package when the service launches in 2025, according to internal projections viewed by Business Insider. It is widely expected that Amazon will cover this cost, with the service offered free of charge from 32 locations to Amazon Prime customers.[2]
This feature first appeared in The DeliveryX Europe Top500 2022. Download the full report here.
References:
[1]www.bloomberg.com/news/articles/2022-04-04/amazon-s-warehouse-plans-keep-being-axed-by-frenchcampaigners
[2] www.chargedretail.co.uk/2022/04/08/amazon-prime-air-drone-delivery/
